Full And Final Settlement [Thread 446541]

Dear Sir,
I had worked in a private organisation and resigned due to personal reasons.
I have the leave balance of
EL – 31.5
CL – 12
SL – 23
and duing full and final settlement , the company has settled only EL . CL and SL was not encashed to me which is a huge loss on monetary part.
kindly suggest/advise whether i am eligible to get CL and SL during my F&F.
Thanks & Regards
R.Balaji

Dear Bala,
Would suggest you to check the site for this. You will easily get the answer for your query. Still, if you have any problem, you can let us know.

See...
Normally ELs are encashed at the time of making full and final settlement of the employee. CL/SL leaves encashment depends on the policy of the company. In Shops and establishment act, ELs are to be encashed. First you need to check under which act you company is registered.... whether in factory act or in shops and establishment act. For example, your company is registered in shops and establishment act of Chennai state, check the act either by using google or from this site (search option available above). Once you get it, go through the leave clause of the act. You will get the answer then.
Hope your query is answered.

Dear Balaji, The Factories Act provides for encashment of Earned leave to the credit of the employee. There is no such statutory provision for allowing encashment of Sick Leave and CL. Indeed, CL lapses every year, so there is no question of its encashment since encashment is allowed for the unavailed leave. Regards KK

Dear Bala,
As per Leave Policy, only balance EL is encashed.
So, if your company mentained other leave policy than CL & ML is encashed otherwise your full & final settlement is provide by your company is right. Generally, CL & ML is not transferrable year to year.
Thanks
Parimal Kishore.

Dear Balaji,
I'm sorry to say this, Sick leave is meant only when you are really sick and there is no practice or rule allowing this or CL, never meant to be encashed.
kumar.s.

PLease tell me which section of factory act provides for encashment of unutilised leave ?
Is there really a provision that makes it compulsory for encashment of leave ?

SORRY.CL AND SL ARE NOT ENCASHABLE. YOU HAVE TO FORGO THE BALANCE UNAVAILED SUCH LEAVES AT THE TIME OF SEPARATION.
regards
bk mohanty
ADvisor and Sr Consultant

pl check the following link : India. The Factories Act

Section 79. Annual leave with wages.-

(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death, calculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section(1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made -

• (i) where the worker is discharged or dismissed or quits employments before the expiry of the second working day from the date of such discharge, dismissal or quitting; and

• (ii) where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death.

Is ther any rule saying encashment of unused leave is compulsory when the person is not leaving the company ? We generally follow a practice of not carry forwarding any leave and not,providing encashment either. We want the employees to avail of all leave and take the required rest and break from work. Is there any rule against this under factory act or shop and establishment act ?